See average TSP balance by age. Compare your retirement account to benchmarks. Understand fund performance & strategies in this summer 2025 guide.
Average TSP Balance by Age, Recent Performance, and Strategy: Retirement Savings Checkup
The Thrift Savings Plan can be a powerful retirement savings tool for federal employees. However, if mismanaged, it cannot provide the retirement income it was designed to offer for as long as federal retirees need it to. Looking solely at periodic gains and losses to then “chase returns” can lead to dilution of growth potential in the TSP. That being said, tracking long-term trends of the TSP core funds plays a necessary role in managing a federal employee’s investment portfolio. Before reviewing the average TSP balance by age and investigating the distinction between investment strategy and income management, including why TSP participants typically need both to be successful, let’s check in on recent performance of the five main funds: C, S, I, F, and G.
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C-Fund, S&P 500 Gets Over 6% Bump in May
The C Fund, which tracks the S&P 500 index, saw it’s biggest monthly increase since November 2023 last month, despite the volatility caused by tariffs back in early April. At 6.29%, it was second largest return of the month, behind the S-fund at 7.21% although as of the time of writing this piece, the completion index-based investment is still negative year-to-date (YTD), but just barely, at -0.02%. The I fund, which hold international stocks and switched its underlying index in 2024, has the biggest YTD return by far at 12.6%. Looking over the last 12 month, all of the TSP’s core funds have shown healthy growth with none having a return less than 4 percent in that timeframe.
Recent Thrift Savings Plan Investment Performance
| Fund | May 2025 | YTD (as of June 9, 2025) | 12 Month Return (as of June 9, 2025) |
|---|---|---|---|
| G | 0.36% | 2.0% | 4.5% |
| F | -0.71% | 2.2% | 4.7% |
| C | 6.29% | 2.7% | 13.8% |
| S | 7.21% | -0.2% | 14.6% |
| I | 4.97% | 12.6% | 10.2% |
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Recent Trends in TSP Performance
Recent trends in TSP performance indicate a steady growth in TSP assets, driven by favorable market conditions and increased contributions. The number of TSP millionaires has risen, reflecting the success of long-term investment strategies. However, market volatility can impact short-term performance, emphasizing the importance of a diversified investment approach within TSP funds.
Investment Strategy and Income Management Strategy: Know the Difference
There are two main reasons why most federal employees need to consult with a financial professional that specializes in federal retirement benefits – either for investment strategy advice, income management planning in retirement, or both. We recently published an article about the details of managing income sources after federal employees retire, but there is another key component to successfully managing a TSP account: investment strategy, such as fully understanding the 4 percent rule.
Federal Employees Need an Investment Strategy for their Retirement Savings
An independent survey conducted here at PlanWell Financial found that 95% of federal employees looking to retire either had no investment strategy, or an incomplete one. To maximize the earning potential of the federal savings plan, one must have a keen awareness of market behavior over the long-term along with a disciplined approach to asset allocation. Even the more savvy TSP investors often overlook some of the nuanced variables involving the markets that leads to lower growth.
Schedule a meeting today with a fiduciary planner for federal employees to look over your TSP strategy and ensure you’re on the path to meet your retirement goals.
Federal Retirement Planning: Benefits of TSP in Your Retirement Income Strategy
Including the TSP in your retirement income strategy offers several benefits, such as tax advantages, investment flexibility, and the potential for significant growth. The TSP’s low-cost structure and diverse fund options make it an attractive choice for federal employees. In federal retirement planning, the TSP serves as a primary savings vehicle, offering tax-deferred growth and a range of investment options.
What is the Average TSP Balance by Age?
The average TSP balance by age is a key metric for assessing the effectiveness of retirement savings strategies among federal employees. It provides a snapshot of how well individuals are preparing for retirement at different stages of their careers. The average TSP balance is calculated by aggregating the total TSP assets of participants and dividing by the number of TSP accounts. This calculation helps in understanding the general savings behavior and financial preparedness of TSP participants.
| Account Balance | Number of Participants | Average Years of Contributions |
|---|---|---|
| <$50k | 4,322,634 | 6.03 |
| $50k–$249k | 1,804,461 | 14.64 |
| $250k–$499k | 588,795 | 20.33 |
| $500k–$749k | 241,460 | 23.27 |
| $750k–$999k | 118,681 | 25.32 |
| >= $1 million | 146,910 | 28.62 |
How is the Average TSP Balance Calculated?
Calculating the average TSP balance involves analyzing the total TSP assets held by participants and dividing this figure by the number of TSP accounts. This average balance provides a benchmark for evaluating individual savings against the collective performance of TSP participants. The calculation considers various factors, including contributions to the TSP, investment returns, and withdrawals, offering a comprehensive view of retirement savings trends.
Factors that Influence the Average TSP Balance
Several factors influence the average TSP balance, including the contribution rate, investment choices, and the length of federal service. Federal employees who maximize their TSP contributions and choose diversified TSP funds tend to have higher account balances. Additionally, the savings rate and the number of years in federal service significantly impact the growth of TSP savings. Economic conditions and market performance also play a crucial role in determining the value of TSP accounts.
How Does Age Affect TSP Account Balances?
Age is a significant determinant of TSP account balances. Younger employees typically have lower balances as they are in the early stages of their careers and retirement savings journey. As employees approach retirement age, their TSP balances generally increase due to consistent contributions and compound growth. For instance, the average TSP balance for individuals over age 50 often reflects the impact of catch-up contributions, which allow for additional savings as retirement nears.
Strategies to Help Increase Your TSP Balance
Increasing your TSP balance requires strategic planning and disciplined saving. Federal employees can employ various strategies to maximize their TSP contributions and enhance their retirement savings. Understanding the role of catch-up contributions and adjusting investment strategies as retirement approaches are crucial steps in this process.
Federal Employees Can Maximize Their TSP Contributions
Federal employees can maximize their TSP contributions by taking full advantage of the TSP contribution limit. Regularly increasing the contribution rate and participating in automatic escalation programs can significantly boost TSP savings. Additionally, understanding the benefits of the Roth TSP and strategically allocating funds across different TSP investment options can enhance overall returns. If you are age 60 to 63, the contribution limits are even higher thanks to the SECURE Act 2.0.
Save For Retirement, Adjust Your TSP Strategy
As retirement approaches, adjusting your TSP strategy is essential to align with changing financial goals. This may involve shifting to more conservative TSP funds to preserve capital or increasing contributions to maximize savings. Evaluating the balance for CSRS and FERS participants and considering the integration of TSP with other retirement income sources, such as Social Security and pensions, is crucial for a comprehensive retirement plan.
Reach Out to Us!
If you have additional federal benefit questions, contact our team of CERTIFIED FINANCIAL PLANNER™ (CFP®) and Chartered Federal Employee Benefits Consultants (ChFEBC℠). At PlanWell, we are federal employee financial advisors with a focus on retirement planning. Learn more about our process designed for the career fed.
Preparing for federal retirement? Check out our scheduled federal retirement workshops. Sign up for our no-cost federal retirement webinars. Make sure to plan ahead and reserve your seat for our FERS webinar, held every three weeks. Want to have PlanWell host a federal retirement seminar for your agency? Reach out, and we’ll collaborate with HR to arrange an on-site FERS seminar.
Want to fast-track your federal retirement plan? Skip the FERS webinar and start a one-on-one conversation with a ChFEBC today. You can schedule a one-on-one meeting now.
